Case Type: increase sales/market share.
Consulting Firm: Trinity Partners second round job interview.
Industry Coverage: Healthcare, Pharmaceutical, Biotech & Life Sciences.
Case Interview Question #00123: The client Novartis (NYSE: NVS) is a multinational pharmaceutical company based in Basel, Switzerland. It currently is the sixth largest pharmaceutical company in the world in terms of revenue ($41.5 billion in 2009) with a profit margin of about 20%, which is about the same as its major industry competitors (Johnson & Johnson, Pfizer, Roche Group, GlaxoSmithKline GSK, Sanofi-Aventis, Merck & Co, Bristol-Myers Squibb, Eli Lilly). However, their 2009 profits were down by 31% from 2007 levels, while industry leader Johnson & Johnson gained 22%.
Although Novartis has what it believes are superior products and good distribution channels, its rivals consistently have a larger market share. For the past two years, the CEO of this company has spent three times the industry average on advertising. There has been blanket coverage on major newspaper and television. Market research reveals that consumers show name recognition for most of the advertised products made by Novartis and the advertising campaign is more successful than hoped; yet sales remain slow. You have been hired as an external consultant to rectify the situation. How would you approach it?